Boom Start Super Laws of Successful Entrepreneurs

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Boom StartSuper Laws of Successful Entrepreneurs
Gary Rhoads Stephen Mack Covey Professor of
Marketing/Entrepreneurship
Lessons Learned from 10 years of research with
Entrepreneurs
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Successful BYU Student Entrepreneurs
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My Entrepreneurial Experiences
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We want to increase the likelihood of student
success!
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What You Dont Need

• Proprietary idea
• Exceptional qualifications
• Significant capital

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What You Do Need!
Angle Horse Events
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Entrepreneurial RD
Rip-off... identify a good idea from your
neighbor where there is significant pain or
opportunity
Design... modify, add to, take away, make it
harder, use it differently, or completely change
the product by sharpening the angle
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Nine methods for Developing New Angles/Categories
Method 1. Take something outof your
product 2. Put something inyour
product 3. Answer to consumergripes 4. Visible
difference 5. Make the taskeasier 6. Use
products in anew way 7. Productsubstitutability
8. Dont be literal,be creative 9. Look overseas
Example Royal Crown removedcaffeine Adding fruit
juice tosoda Locked my keys inmy car Same
old cereal Time-consumingoven cooking Wine
mixed withseltzer Cereal substitute
forcereal-avoiding teens A healthy
Popsicle Healthy Breakfast
Result First decaffeinated cola Slice Warning
bell Adding Xs to the Os in Cheerios Jet
Stream Oven Wine coolers Total Breakfast
Bars Dole Fruit Juice Bars Yoplait Yogurt
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Super Law 1 Sharpen The Angle
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Five Dimensions of an Angle

• Need to Believe
• Reason to Believe
• Blows-Away Expectations
• Quantifiable Support
• Unique Product Claim

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Sharpen the Angle - NTB

• Need to Believe - Is there enough pain or
  opportunity to make people pull out their credit
  card?

Nobody will pay you to solve a non-problem!
Big Problem Big Opportunity
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What are the problems with keeping warm
comfortable when skiing?
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Klymit Solves the Problem
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Klymit Products
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Five Dimensions of an Angle

• Need to Believe - Is there enough pain or
  opportunity to make people pull out their credit
  card?
• Reason to Believe - Does the product touch the
  human sense of believability with a compelling
  proof-point?

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Which has the better RTB?
Golfers want to putt the ball straight... so
which putter has the strongest reason to believe?
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Strong RTB Strong ale
GOLD (EDITOR'S CHOICE) ODYSSEY WHITE HOT XG
2-BALL SRT STREET PRICE 200. SPECS Eight
Versions (White Steel, White Hot and regular
2-Ball). KEY TECHNOLOGY The 2-Ball uses
golf-ball-size discs on the top of the putter to
help the user align square to the target. The SRT
has an alloy ring that pushes weight away from
the center of gravity in the aluminum head,
providing support and increasing moment of
inertia. PANELIST COMMENTS "It has become the
standard others are measured against. . . . This
well-worn design just keeps getting better every
time they redo it. . . . The insert is an
improvement over the White Steel in terms of
feel." JUDGES' VERDICT It's almost impossible to
remember what putting was like before the 2-Ball.
It's not a gimmick, certainly not in its latest
technological form. The ring improved moment of
inertia last year, and the White Hot XG insert
creates a favorite feel this year.
Golf Digest - Hot List Again
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Five Dimensions of an Angle

• Need to Believe - Is there enough pain or
  opportunity to make people pull out their credit
  card?
• Reason to Believe - Does the product touch the
  human sense of believability with a compelling
  proof-point?
• Blows-Away Expectations - Does the product
  dominate a situation and deliver superior value?

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Dominate a Usage Situation
Situation
Person
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The Challenge Facing Technology Firms
Failure to Dominate
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Technology Adoption
Suppose General Motors makes an electric car, and
Ford and Chrysler follow. Lets assume the cars
work like any other, except they are quieter and
better for the environment. Now the question is
When are you going to buy one?

• Not until hell freezes over

Laggard

• When I have seen electric cars prove
  themselves and when there are enough
• service stations on the road.

Early majority

• Not until most people have made the switch and
  it becomes really inconvenient
• to drive a gasoline car.

Late majority

• I want to be first on the block with an
  electric car.

Innovator/ Early Adopters
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Crossing the ChasmWinning Over Pragmatists
(Early Majority)
1. Target a very specific niche market
(person-situation).
2. Assemble the invasion force (partners,
allies).
3. Define the battle (USP).
4. Launch the invasion (marketing mix).
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Five Dimensions of an Angle

• Need to Believe - Is there enough pain or
  opportunity to make people pull out their credit
  card?
• Reason to Believe - Does the product touch the
  human sense of believability with a compelling
  proof-point?
• Blows-Away Expectations - Does the product
  dominate a situation and deliver superior value?
• Quantifiable Support - Are there facts and
  figures to enhance product claims?
• Unique Product Claim - Does the product earn its
  way to occupy a unique position in a customers
  mind?

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How do you compete with...
Coca-Cola and Pepsi?
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(No Transcript)
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Sharpen the Angle - UPC
Unique Product
Flop
Low Price
Valued by Customers
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Your unique claim must be valued by the customer.
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School Tipline
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Believing in Yourself and Working HardIs the
Key to Entrepreneur Success, Right?
All things come to those who hustle while they
wait. Thomas Edison
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Ride Horses!

• The key to success in life is learning to believe
  in and rely on others
• Find the sort of horses that you can ride to the
  bank
• A fast set of horses increases your speed to
  market
• Its not about what you know ...its about who
  you know
• A good horse will be a champion for your blue
  ocean angle

Stand Alone Success Factor
High Med Low
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Super Law 4 Throw an Event
Best Practices Get Experiential Have a Love
Fest Make Demonstrations Compelling
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Marketing Events

• Marketing tactics are really marketing events
• Events can be activities, exhibitions, hoopla,
  happenings, gatherings, tournaments,
  competitions, matches, races, games, etc
• Having a focus on throwing Marketing Events
  reminds us that we are selling a consumption
  experience and not just a product

Stand Alone Success Factor
High Med Low
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Will It Blend
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What to Demonstrate!
Blow Away Expectations by Showing off the
relative advantage and fit with the day-to-day
Success Factor
High Med Low
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Entrepreneurial Quote to Live By

• If I had asked my customers what they wanted,
  theyd have asked for a faster horse. Henry Ford

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How Entrepreneurs Do Research?
Text
Text
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How Entrepreneurs Do Research!

• Entrepreneurs often use their instincts to make
  quick decisions
• Some basic data can be relatively easy and
  inexpensive to collect helping to educate the
  intuition
• Analysis Paralysis can defeat you

100 gut-feeling
100 research
Gut
Intellect
Could be very risky
Analysis Paralysis
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Is Marketing Research Worth the Expense?

• A survey of small business managers in Texas
  revealed that
• 84 percent of those who conducted formal
  marketing research projects in the past three
  years felt that the information obtained was
  worth the money spent.
• Overall, 58 percent said that they were able to
  incorporate the research findings into their
  decision-making process.
• Only six percent reported that they were not able
  to implement the results.
• Consequently, when small businesses do engage in
  marketing research the benefits usually exceed
  the costs.
• -David J. Snepenger, Montana State University
  College of Business (http//www.montana.edu/wwwpb/
  pubs/mt9013.html)

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Win the Swing!
Yes, the Swing Group is the biggest opportunity...
Love
Swing
Hate

• Need to Believe
• Reason to Believe
• Blows-Away Expectations
• Quantifiable Support
• Unique Product Claim

But, use the Love Group to Sharpen the Angle by
pinpointing the passion!
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• Used gut-feeling
• Single biggest mistake they made in the beginning
  was not collecting data on customers
• First 7 of 9 books failed
• Could have saved hundreds of thousands of dollars
  and years of efforts

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Always Look for a Better WayDo Things Faster,
Better, Cheaper!
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TESTING IDEAS THAT STICK

• Test multiple concepts to hide your big idea
• Reveal the concept, step-by-step, and watch for
  reactions!
• Ask for a summary and clarifying questions, but
  dont be defensive about objections - smile and
  explore!
• Measure the WOW - are they ready to pull out
  their credit card and buy?
• Use the Six Thinking Hats on your favorite
  concept - carve yourself out some blue ocean!

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Whats the WOW Process?
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Does your Angle Create Interest in the Market?
The WOW Factor
Ideas are the new currency in corporate America.
Walter Wriston
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Six Thinking Hats

• White Hat - Facts
• Red Hat - Emotions
• Black Hat - Negative Judgement
• Yellow Hat - Positive Judgement
• Green Hat - Alternatives and Creativity
• Blue Hat - Thinking about Process

Edward de Bono Hats...
How do you get consumers to be creative, and stop
being persistently negative or positive? The six
thinking hats is a questioning approach to get
consumers to be creative in seeing the total
picture (positive, negatives, opportunities,
and potential problems) when developing and
discussing new products or ideas.
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Wow Factor
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Six Questions You Need to Know

• Who.....is going to buy the product?
• What....is the benefit they are buying?
• When...do they make their purchase decision?
• Where...do they expect to find this product?
• Why......buy this vs. other brands/substitutes?
• How.....do they buy and the use the product?

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Best Wishes for Success!
Gary Rhoads Stephen Mack Covey Professor of
Marketing/Entrepreneurship Michael Swenson Ford
Professor of Marketing David Whitlark J.C Penny
Professor of Marketing
Marriott School Brigham Young University
kendallhunt.com